As a proud American, it pains me to say this, but from my viewpoint, the United States is in decline. Our fiscal house is an absolute mess, and the raging debate over raising the debt ceiling just highlights how bad the situation has become.
Neither Democrats nor Republicans have any real solutions to the main trio of problems facing the U.S. — grotesque government spending, runaway regulation on business and oppressive taxation. So, is it any wonder why our economy is growing at an anemic rate of below 2%? Meanwhile, China, an ostensibly communist country, is experiencing economic growth of 9.5%.
In the face of the sad realization that the U.S. is in decline, how should an investor react? Well, the answer is to pick the best companies out there with an international focus. Moreover, you want to hold companies that have significant market share in industries likely to grow, regardless of what happens with the economy here at home.
The following five stocks are positioned nicely to prevail even if the U.S. decline continues.
This article originally appeared on Traders Reserve.
Caterpillar Inc.
The U.S. may be growing slowly, but that doesn’t mean the rest of the world is in the same boat. Emerging economies such as China, India, Brazil and Russia all are experiencing huge economic growth, and that growth requires huge construction projects to reshape the landscape. Those projects involve big, heavy-duty construction equipment of the type made by Caterpillar Inc. (NYSE:CAT). The iconic brand can be found in nearly every corner of the globe, and that means Caterpillar will have a serious revenue pipeline coming in to support its shares in the years to come.
Coca-Cola
No brand is more ubiquitous around the world than Coca-Cola (NYSE:KO). The beverage giant can be found even in the far reaches of the globe, and as third-world nations become second-world nations, and as second-world nations grow their way into first-world status, we are liable to see the already-mammoth Coca-Cola brand become exponentially bigger. While the company sells a lot of product in the U.S., its international business is what’s really fizzed in recent years, and that makes KO a stock to own for the U.S. decline.
McDonald’s Corp.
Restaurant giant McDonald’s Corp. (NYSE:MCD) has made a mission out of providing fast food to more countries than any other restaurant chain in history. In fact, McDonald’s global growth has really helped fuel the company’s profits, particularly over the past decade. That growth has also helped MCD shares supersize their share price gains more than 300% over the past 10 years. As citizens across the globe continue to get a taste of McDonald’s, investors will likely continue getting a taste of those huge MCD share price gains.
Phillip Morris International
It may be very uncouth to light up a cigarette here in a major U.S. city like New York or Los Angeles, but in some countries around the globe it’s as common as breathing. The ubiquity of the habit, particularly in the emerging markets of Asia, is helping tobacco giant Phillip Morris International (NYSE:PM) earn big bucks from international sales. As the middle class in emerging Asia continues to grow, more people are likely to buy cigarettes, and that means more big profits for Phillip Morris International.
Potash Corp. of Saskatchewan
The world is hungry, and in countries such as China and India there’s been an explosion of demand for high quality, high protein food products. Growing the amount of grain necessary to feed the demand for cattle, pigs and chickens is increasingly difficult and requires a whole lot of fertilizer to get maximum yield out of each acre of farmland. That’s where Potash Corp. of Saskatchewan (NYSE:POT) comes in. The company produces and sells fertilizers and related industrial and feed products that keep the planet nourished. As more and more countries around the world get rich enough to afford better food, there will be greater and greater demand for fertilizer from Potash.
